Making the Right to Social Security a Reality for All Workers

The right to social security has strong anchoring in international human rights law and forms a critical component of international labour standards. While social security has sometimes been portrayed as inimical to economic dynamism, there is a much larger body of work that posits a positive relationship between social welfare and economic progress. The COVID-19 crisis has revealed stark gaps in social protection. Workers in the informal economy have been particularly hard hit, as they were excluded from formal work-related protections and were not eligible for social assistance that often targets the very poor and those outside the labour force. Social assistance schemes with flat-rate benefits can be an element of a rights-based national social protection system if their eligibility criteria, benefit levels and modalities are set out in the national legislation, to ensure transparency and accountability. However, social assistance schemes should be part of a broader social protection system, which usually combines tax-financed schemes and social insurance to guarantee a social protection floor and provide higher-level benefits in line with international social security principles. Inspired by a vision that seeks to formalize all economic units, especially micro-, small- and medium-sized enterprises, and make the right to social protection a reality for workers in all types of employment, the paper points to a number of country examples that have extended social protection by combining contributory and non-contributory elements. This vision is particularly needed at a time when climate change adaptation, digital transition, and other drivers of transformative change call for the formalization of jobs and enterprises, while making it possible for states to mobilize the maximum available resources to build universal, comprehensive and adequate social protection systems that can facilitate inclusive transitions.